Akamai is the hands down leader in their space. I know, actually worked for one of their competitors ten years ago. They have reached a critical mass point where they can go through the roof (again) or be usurped. I haven’t seen any likely usurpers, so my bet is they go back up. But, being cheap and lazy, the ~20% fall this afternoon is not enough for me. That, and askStockGuru thinks they AKAM can drop further still as of today. I’m looking for a second drop before I jump in. Should change this site to Cheap, Lazy, Paranoid Investing 🙂
Archive for July, 2009
Alliance Healthcare Services, Inc missed the street expectations and lowered guidance. They are still profitable in a down economy, just a lower profit. I would worry more about the changes in government healthcare policies, though I think today AIQ was beaten down far enough to cover that bet as well. Still, I’m cheap, so I but in a limit buy at 5.19, though I was tempted to hold out for 4.99.
I try to remember that if I real like something that is fairly new, buy it. This is in hindsight of all the things I have missed out on. Too bad I’m not the early adopter I used to be, but that requires more free time than I have (the lazy part comes from no time to be otherwise).
This one happened so quick, if I had blogged it I would have missed it (which has happened before). What is important to learn from is the process.
This morning, USU went into a nose dive. You’ve got to love after market trading, which is the only way a stock can plummet almost 50% by 9:45 AM. I figured from the panic that it would drop a bit further, and picked it up at 3.26.
I had two plays in mind. If it bounced right back up, it could stay up or fall off again. If it took a day or two to come back up, it would probably drift slowly back up as the rumors faded. Or, of course, I could be totally wrong and lose a few bucks. What amazed me is that my low-ball limit buy went through in minutes. For once I hit it right on the nose, and by the time I even knew I owned it I was up 10%. I then put in a limit sell of all shares for 4.24 good for the day. The plan then was if it didn’t hit that number by market close I would put in a new limit sale at 5.29, but only enough shares to cover my investment, leaving the rest as “free” stock.
If I can get my money back and have stock left over within 60 days, I consider it free stock. One of my previous free stocks was JNY, where I continued to pick up free stock for a year as they bounced around. Thank you Jim Cramer for the first buy on that one.
I overheard two conversations on a recent cross-continental trip where Rosetta Stone was mentioned in the context of the global economy. My bet is that US companies will realize that software is cheaper than sending people to classes and when things pick up again, RST will rise.
Right now I’m looking for a little dip before committing dollars to my thoughts.
Knowing that can sometimes be helpful in picking a hot sector or knowing why an IPO may or may not be a good bet. RedHerring.com is a good source for this type of information, and has interesting content.
It’s no big surprise that retail is getting pummeled. Saks dropped more than 10% today as earning missed. Hmm. Foreclosures up, expensive do-dad sales down. Who’d have thunk?
But, I always remember Saks as the anchor store for the upscale malls, and I expect that they may get beat down over the hot summer to rebound with the back-to-school market, so I’m going to keep an eye on that price. The price will need to be very low, though, for a retailer with no dividend.
Sold at $17. I see $14.65 as the current support, and will come back at $14.80 to buy again if the dividend is still good.
askStockGuru has them at but price of 6.80 as of this writing , I had a watch at 6.99 running for awhile. The hesitation would be that the market is trending down, and I (like most honest investors) don’t know how long that trend will last. The dividend is tempting, though I note from Yahoo company events that it was recently cut.
ARYx Therapeutics, Inc. (ARYX) nose-dived today because their closest-market product in the pipeline was declared a failure. The market very brutal with these incidents. When I see a small pharam or biotech drop because of a problem with one product I immediatly look at their pipeline. ARYx Therapeutics is one of the more promising ones. Having taken a beating on NEXM by being too greedy, I’m a little cash-challenged, so rather that pick up ARYX at its current price, I put in a buy for a much lower price as sometimes these drops slow down then drop again as those on the fence fall off it. If I get lucky and pick it up on the second drop and there is another fifth drop, I could do okay. Then again, I still have a pile of Lehmans, so don’t take my word for it.